KROGER CO., Cincinnati, said it will use bank borrowings to redeem the entire outstanding balances -- totaling approximately $142 million -- of two bond issues at 104.875% of their face value, plus accrued interest. The redemption, scheduled for Feb. 15, will involve the chain's 9.75% senior subordinated debentures and its 9.75% senior subordinated debentures, Series B, both due in 2004.
DRUG CENTERS, Salt Lake City, said it has made voluntary prepayments totaling $150 million on its bank term loans: $50 million last Wednesday, $40 million Jan. 10, $10 million Dec. 31, and $50 million Sept. 30. The company said the prepayments are due primarily to additional asset sales from the divestiture of its California stores and related tax benefits.
Kmart corp., Troy, Mich., and Kroger Co., Cincinnati, are jointly recalling two flavors of Kmart's American Fare-brand ice cream from 41 Kmart stores. The affected products, Pralines & Creme and Heavenly Hash in half-gallon size round plastic tubs, are being recalled because of a labeling error.
JURY DELIBERATIONS were continuing late last week over the amount of punitive damages ABC should pay to Food Lion, Salisbury, N.C. The jury found ABC (part of Walt Disney Co.) guilty of fraud last month in a case involving a 1992 hidden-camera report on "PrimeTime Live" that questioned the chain's sanitary handling practices.
